Knock Knock, Who is there? $LPH $$

Nobody --- apparently. Nobody is listening. That’s fine. That’s about what you’d expect when you find something that actually is undervalued. Louis Navellier allegedly just left the building. He’ll likely be back.

It’s funny to me that this particular company is getting sold off. Take a look at how fast they are growing. What kind of multiple you’d pay for this kind of company?

The analyst report from RedChip suggests that 8x earnings is what you should be willing to pay. That’s $5.20. Look, I’m not going to poke fun at analysts, but any mutual fund manager would love to buy a stock growing this fast at more than 16x earnings.

You want catalysts? I’ve got a few.

Crude Oil prices are rising. Not only that, but in terms of US Dollars they are going to increase from here as we are currently at Peak Oil --- been at Peak Oil since 2004. Energy demand in China is going to squeeze oil prices higher there and especially in the US. Get ready for it.

Global Money Flows to China. Where is money going to flow globally? China. Why? Because they are raising interest rates --- and this attracts investment capital. Not to mention that the Shanghai and Hang Seng still have upside to their markets before they are overpriced. If Longwei listed on one of those exchanges, it would likely sport a 30x multiple or greater.

**Expansion to a New Facility. **It’s likely to happen in the next 12 months.

**The Yuan will rise against the Dollar. **Longwei earnings will be magnified in terms of dollars as this happens.

Besides, who wants to invest in the US Treasuries when they can invest in Yuan dominated securities that will likely be revalued higher when the Chinese lets the Yuan float? I said you should be shorting US Treasuries a while ago using something like TBT. Still a great investment thesis but honestly making tens of percentages is a joke when you can make hundreds of percentages.

Disclosure: At the time of publication Bradford and his investors were long LPH common, LPH preferred, and LPH warrants.